Suppose the government comes out with a report suggesting that the economy will soon dip into...

Suppose the government comes out with a report suggesting that the economy will soon dip into a recession. You can expect that: (more than one answer)

a) levels of cyclical unemployment will rise.

b) levels of frictional unemployment may rise as people looking for jobs will find it harder to get new jobs.

c) levels of structural unemployment are not likely to change much.

d) labor-force participation rate is likely to fall as potential workers will avoid the job market.

e) labor-force participation rate is likely to rise as potential workers join the job market.

f) levels of frictional unemployment may fall as people find jobs more quickly.

g) levels of structural unemployment are likely to rise as businesses look for specific types of workers.

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Expert Solution

Rahul Sunny answered 1 year ago

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